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HomeMy WebLinkAboutMemo - Mail Packet - 10/18/2022 - Memorandum From Kirk Longstein And Rebecca Everette Re: 1041 Regulations - Project UpdatesPlanning, Development & Transportation Services Community Development & Neighborhood Services 281 North College Avenue P.O. Box 580 Fort Collins, CO 80522.0580 970.416.2740 970.224.6134- fax fcgov.com DATE: October 13, 2022 TO: Mayor and City Council THRU: Kelly DiMartino, City Manager Tyler Marr, Interim Deputy City Manager Caryn Champine, Director of Planning, Development and Transportation Paul Sizemore, Community Development and Neighborhood Services Director FROM: Kirk Longstein, Environmental Planner Rebecca Everette, Planning Manager RE: 1041 Regulations – Project Updates Bottom Line: This memo provides an update on community engagement and the approach for Council’s first reading of the proposed 1041 regulations. Based on Council feedback at the June 28, 2022 Work Session and public engagement, staff has revised the draft regulations to refine the scope, applicability, definitions and review standards for activities of interest. Given the extensive nature of the revisions from the June 2022 Draft, staff has proposed a Council Work Session to review the updated draft and option, and to seek further feedback and guidance in preparation for First Reading. Proposed Scope of Regulations: As currently proposed, a 1041 permit would be required for projects that are included in one of the categories below and have adverse impacts. Staff has prepared two versions of the draft regulations in light of comments received: Version One includes the types of projects described in the designation ordinance, and would apply to projects throughout the City (edge to edge and not in specific geographic locations): 1. New arterial highways, interchanges, and collector highways. 2. Expanded arterial highways, or collector highways that would result in either: a. An increase in road capacity by at least one vehicle lane; or b. Expansion or modification of an existing interchange or bridge. 3. New wastewater treatment plants. 4. New or extensions to major domestic water and sewage treatment systems. Version Two includes these projects (as designated previously and noted above) but is limited to a narrower geographic scope, slightly modified from the scope of the moratorium, as follows: 1. Projects otherwise within the scope of the regulations that either: 2 a. Are located on (or cross through) an existing or planned future City natural area or park, whether developed or undeveloped; or b. Are located on (or cross through) City building sites or other non-right-of-way property owned by the City, whether developed or undeveloped. For Council discussion, this version also includes within its scope projects that: c. Are located within an existing or potential future buffer zone of a natural habitat or feature, as defined in the Land Use Code; or d. Have potential to adversely impact historic resources. Recent Work and Next Steps: Based on Council’s discussion at the June 28 Work Session and with continued public engagement (see public engagement summary below) staff has updated the 1041 regulations to incorporate additional feedback since the draft regulations were first released in June 2022. Staff recognizes that Councilmembers still have questions or concerns about the current scope of the regulations and the options presented, and the project would benefit from an additional work session prior to first reading. A work session has been scheduled for November 8. Depending on Council direction, staff could bring an Ordinance to Council as soon as December 6. The following options represent two timeline scenarios that may be appropriate based on Council direction: Timing Options for Council Consideration Option 1 (compressed timeline) Work Session – November 8 First Reading – December 6 Second Reading – December 20 Moratorium expires December 31 Option 2 (extended timeline) Work Session – November 8 Ordinance extending length of moratorium for 2-3 months – November 15 First Reading – December 20 Second Reading – January 17 or February 7 Following first reading, staff is prepared to make modifications to the Ordinance based on Council’s direction on first reading, for as needed. If first reading of the Ordinance is delayed as recommended, or if, on first reading, significant changes to the draft regulations warrant additional public engagement or legal review, staff is prepared to present to Council an Ordinance to extend the length of the moratorium by 2-3 months. Due to the time and effort required to revise the draft code, recommendations from the Planning & Zoning Commission, Land Conservation Stewardship Board, Natural Resources Advisory Board, Water Commission, and Transportation Board will not be available until late November. If Council desires additional time for board and commission recommendations prior to first reading, then the date of that hearing should be delayed, and the moratorium should be extended. In addition, Council may wish to provide more time for stakeholders to review and comment on the new drafts of the regulations, given that the prior public draft was presented much earlier in June as only a preliminary draft for discussion. 3 PUBLIC ENGAGEMENT SUMMARY Over the last ten months, staff sought input from community partners on 1041 regulations for water and highway projects that are (1) contextually appropriate to Fort Collins, (2) provide predictability for developers and decision makers, and (3) provide adequate guidance for staff review and implementation of permits. Throughout the time since the release of the initial draft code in June to the present, in addition to organized outreach events, staff has met or spoken by phone at length with individual stakeholders, both in support of and opposed to the regulations, to discuss questions and feedback in great detail. Staff has listened deeply and worked to find balance among the perspectives and concerns expressed by various individuals, organizations, utility providers, agencies, developers, Boards and Commissions, and Northern Colorado communities. Significant revisions in the current draft regulations are in direct response to the insights and information gathered through these conversations. The following table summarizes feedback from public comments, an anonymized survey, 1:1 discussions and focus group meetings as they relate to various community priorities: Community Feedback Themes Housing Resilience Value for natural habitat features that increase community wellbeing through benefits like clean air, landscape aesthetics, and flood control. Concerns that environmental regulation can impact the supply of housing if they increase the amount of time necessary to build housing units. High Performing Government Value for transparency, access to more information and opportunities to address inequities. Concerns that additional permitting requirements are redundant, create uncertainty, project delays, require additional time, and investment in City- specific mitigation requirements. Economic Resilience Preference for local control of large projects to ensure community-wide benefits are realized. Importance of balancing the burdens of bureaucracy and the demands of a fast- growing community. City Council: The current draft of the regulations was structured around the feedback received from City Council at the June 28 Work Session and subsequent input. The following feedback themes were shared by Council during the Work Session and addressed by staff. City Council Feedback How has Staff Addressed Feedback? Create right guardrails for 1041 applicability. Staff have clarified ordinance text to align more closely with the thresholds from the moratorium ordinance, while still protecting natural habitats and features from adverse impacts. Review exemptions to ensure they don’t result in loopholes. Concern over the term “significant” as being arbitrary and too high of bar. Staff have removed the term significant and are relying on the definition of “adverse impact” and full mitigation for permit issuance. Support tiered review process as long as it works. Staff have removed the administrative review and is keeping the” Finding of Negligible Adverse Impact” concept so that a relief valve is provided for smaller projects and City Council is the sole decision maker on larger projects requiring permits. Establish time period for pre- application process. Maximum time periods have been incorporated into the pre- application process. 4 Focus Groups: Focus groups played a key role in reviewing Code language and providing specific feedback that staff have addressed in an updated draft regulations. The focus groups included: Colorado Department of Transportation (CDOT) staff Environmental advocacy group representatives Economic and Regional representatives (homebuilders, elected officials, Chamber of Commerce, CSU) Water and Sanitation Providers Boards and Commissions representatives Stakeholder Feedback How has Staff Addressed Feedback? How does 1041 lead to a better project outcome and enhance overall community benefits? Review criteria include the City's Natural Habitats and Features Inventory Map, which aligns with the community’s values to preserve natural resources. The permit program introduces an administrative burden that adds time and cost. Updated review criteria, articulating the role of mitigation, and aligning with existing City maps of natural habitat features intend to provide additional certainty for agencies planning a multiyear infrastructure project. Ambiguous approval process adds project uncertainty. Staff have removed “tiered review” so that City Council is the sole decision maker. 1041 is redundant with multijurisdictional requirements and is out of sync with federal funding opportunities. The focus of the scope and review criteria seeks to address gaps in other jurisdictional procedures. For example, the city can ensure protection and mitigation of resources that may not be protected by County, State or Federal regulations. Regs should allow more flexibility and exemptions Updates to the City’s definition of development intend to create certainty and narrow the scope of projects covered under the 1041 regulations. 1041 regs should be applied to private development and not public agencies. Fort Collins Utilities is a public agency leading by example and partnering with City Planning staff to ensure regulations align with the service delivery commitments of Utilities and the values of the community. Uncertainty around the use of Intergovernmental Agreements in lieu of permitting. The current draft removes this provision. Requirements for water conservation and other programs in the system of an applicant water provider go beyond the City’s appropriate reach. The current draft removes requirements related to the applicant’s system that are not physically within the scope of the regulations. 5 Public Participation Activities: Throughout 2022, the general public was invited to participate and engage through online activities, public events and one-on-one meetings with City staff. Throughout the engagement process key questions included: Parameters, Exemptions, and Thresholds o How do staff determine what project categories are regulated? o How does the program provide a clear review process? Review Criteria o What are the parameters of an adverse impact? Application requirements o What is needed to determine an application complete? Application review process o Who is the decision maker o What is the appeals process? Boards and Commissions Dates Water Board 9/16/2021 8/18/2022 11/17/2022 Transportation Board 11/16/2022 Planning and Zoning Commission 8/13/2021 2/11/2022 6/10/2022 10/14/2022 11/17/2022 Land Conservation and Stewardship Board 9/8/2021 2/9/2022 6/8/2022 10/12/2022 Chamber of Commerce 9/17/2021 6/24/2022 10/28/2022 Natural Resources Advisory Board 9/16/2021 2/16/2022 6/15/2022 10/19/2022 Economic Advisory Board 10/19/2022 Focus Group meetings Dates Water and Sanitation providers 2/3/2022 8/1/2022 8/18/2022 Environmental 2/4/2022 8/2/2022 8/4/2022 Economic/Municipal 2/3/2022 8/2/2022 Colorado Department of Transportation 1/28/2022 8/5/2022 Boards and Commission liaisons 2/8/2022 8/1/2022 8/4/2022 Larimer County 1/23/2022 2/8/2022 Public Participation Dates Open House/Public Forum 2/23/2022 (AM & PM) 8/30/2022 9/1/2022 Online Survey 2/1/2022 8/30/2022 Online engagement – OurCity; fcgov.com Ongoing Press Release 9/2021 2/2022 8/2022 6 Stakeholder List The following list details the interested parties that have been directly engaged by staff at several times during the process. Outreach and engagement has included the activities described above, as well as frequent email updates, newsletter communications, and individual meetings. Air Quality Advisory Board Larimer County Planning Staff American Whitewater League of Woman Voters Boxelder Sanitation Natural Resources Advisory Board Chamber of Commerce North Front Range Water Quality City of Greeley North Weld County Water District City of Windsor Northern Engineering Colorado State University Northern Water Colorado State University Research Foundation (CSURF)Planning and Zoning Commission CSU Graduate Student Save the Poudre Ditesco Sierra Club East Larimer County Water District (ELCO) South Fort Collins Sanitation District Fort Collins-Loveland Water District (FCLWD) SpacePreservation.org Fort Collins Sustainability Group TB Development Group Fort Collins Utilities Transportation Board Hartford Homes Trout Raley Law Land Conservation and Stewardship Board White Bear Ankele Law Larimer Alliance cc: Carrie Daggett, City Attorney Brad Yatabe, Assistant City Attorney